Fannie Mae (FNMA)

[kthomp19]

What is funny about this is that if jps get cancelled, it is because the commons are cancelled too.

There's one other possibility: the juniors get redeemed at full par for cash. I believe that technically, cancelling the shares would happen at the same time. This doesn't make sense for companies that are trying to recapitalize, though.

But in all cases, if the commons have an economic value of even one cent then the juniors are worth at least full par. It's alarming how much ignorance there is (not on your part) about what a restructuring means and the great importance of the capital stack in a restructuring.